Operational Risk and Resilience

A screening process that takes a number of weeks is likely to

result in potential customers finding they want to go else-

where. Through reengineering and outsourcing, an organiza-

tion may find it can halve that time. In the case of an insurance

company, it would retain its core competency – that of under-

writing – but may outsource the screening process to a third

party which has more efficient processing tools and methodol-

ogy, using cutting-edge IT systems.

Operational risks increase because businesses are placing more

of their strategic objectives in the fate of others. The impact of

risk may be that much higher.

Managing outsourcing risks

There are ...